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One new Vat Act change you must know regarding tax invoices

by , 16 April 2013
If your business is Vat registered, you'll know a tax invoice's the most important link in the Vat chain. As our Vat specialist Dee Bezuidenhout can tell you, every year at the end of the Vat Materclass, we receive countless questions on the right way to issue correct invoices, and when to use the abridged invoice format.

One new Vat Act change you must know regarding tax invoices

I've got good news! The Vat Law's changed on 20 December 2012 and now you can now issue abridged tax invoices for supplies of less than R5 000 – it used to be for R3 000. What's the difference between a full and an abridged tax invoice you ask? Before you start issuing invoices for less than R5 000, you must know the difference between a full and an abridged  tax invoice.  

Let's take a look...

Use this handy checklist to know when you must issue a full or abridged  tax invoice now

A full tax invoice's issued for consideration of R5000 or more.

An abridged tax invoice is Issued for consideration of less than R5 000.
 

Checklist: The difference between full and abridged tax invoices

Full tax invoice: Issued for consideration of R5000 or more

Abridged tax invoice: Issued for consideration of less than R5 000

 The words 'tax invoice' in a prominent place

The words 'tax invoice' in a prominent place

Name, address and Vat registration number of the supplier

Name, address and Vat registration number of the supplier

Name, address and Vat registration number of recipient

Not needed – it can be made out to 'cash'

Serial number and date of issue

Serial number and date of issue

Accurate description of goods or services

Description of the goods

Quantity or mass (weight) of goods or services supplied

Not needed

Price and Vat

 

Price and Vat


This updated law should save you time and effort because you'll only need to issue (and receive) full tax invoices for supplies and services of more than R5 000.  The Practical Vat Loose Leaf updates you on the latest laws changes, and gives actionable tips on how to implement these. Click here to order your copy.

Until next time...

Philip Rosenberg
Managing Editor of the Practical Vat Loose Leaf

P.S. If you have more questions about abridged or full tax invoices, visit the new Accounting & Tax club. Your questions get a guaranteed answer there.



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